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Mumbai Markets Slide Amid Global Inflation Fears

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  Published in Stocks and Investing on Monday, February 16th 2026 at 23:14 GMT by Business Today
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Mumbai, India - February 17th, 2026 - Indian equity markets experienced a challenging trading session today, with both the benchmark Sensex and Nifty indices closing lower amidst growing concerns about global inflation and potential monetary tightening. The Sensex finished down 215 points, signaling a broad market retreat, while the Nifty struggled to remain above the 25,650 level, ultimately closing below that psychological threshold.

The downturn reflects a global sentiment shift, largely driven by anxieties surrounding persistent inflationary pressures and increasingly hawkish commentary from the US Federal Reserve. US economic data released last week indicated a resilience in the American economy, lessening expectations of immediate interest rate cuts. Instead, analysts now anticipate the Fed maintaining its restrictive monetary policy stance for a longer period, potentially even considering further rate hikes if inflation remains stubbornly above the 2% target.

This has triggered a sell-off in global equities, as higher US interest rates tend to draw capital away from emerging markets like India. The strengthening US dollar also negatively impacts Indian companies with significant dollar-denominated debt. Investors are bracing for potentially tighter liquidity conditions and a slowdown in economic growth, both domestically and internationally.

Adding to the overall market pressure, shares of Hatsun Agro Product, the parent company of the popular Kwality Walls ice cream brand, experienced a significant decline in trading today. While the exact reasons behind this specific drop remain under investigation, preliminary reports suggest a combination of factors could be at play. Some analysts speculate about increased input costs - particularly sugar and dairy products - impacting the company's profit margins. Others point to potentially weakening consumer demand for discretionary items like ice cream as household budgets tighten due to rising prices.

Furthermore, there's discussion surrounding increased competition within the frozen dessert sector, with several new players entering the market and offering innovative products. This increased competitive landscape could be putting pressure on Hatsun Agro Product's market share and forcing it to invest more in marketing and product development.

Sectoral Impact & Future Outlook

The market correction wasn't limited to Hatsun Agro Product. The consumer staples sector, as a whole, faced headwinds, reflecting fears of reduced consumer spending. Pharmaceuticals and IT stocks also witnessed selling pressure, as investors rotated towards perceived 'safe haven' assets.

However, some sectors demonstrated resilience. Energy stocks benefited from a slight uptick in crude oil prices, while infrastructure and public sector undertakings (PSUs) received support from continued government spending on infrastructure projects.

Market analysts are advising a cautious approach in the short term. "The current volatility is expected to persist as investors digest the latest economic data and policy signals," explains Rohan Verma, a senior analyst at Stellar Investments. "Investors should focus on fundamentally strong companies with healthy balance sheets and sustainable growth prospects. Avoid excessive leverage and consider diversifying portfolios to mitigate risk."

Several economists are now revising their growth forecasts for the Indian economy downwards, citing the global headwinds and the potential impact of delayed monsoon rains. While the Indian economy remains relatively robust compared to other major economies, it's not immune to external shocks.

The Reserve Bank of India (RBI) is expected to closely monitor the situation and may intervene to stabilize the rupee if it weakens significantly. However, the RBI is also constrained by the need to control inflation, making any aggressive monetary easing unlikely in the near future.

Investors will be closely watching upcoming economic data releases, including inflation figures, industrial production numbers, and the RBI's monetary policy review, for clues about the future direction of the market. The next few weeks are likely to be crucial in determining whether the current downturn is a temporary correction or the beginning of a more prolonged bear market.